Join Early Retirement Today
Reply
 
Thread Tools Display Modes
The "price" of diversification
Old 07-14-2005, 11:54 PM   #1
Recycles dryer sheets
 
Join Date: Jul 2002
Posts: 422
The "price" of diversification

2 (small) up days in the market while my portfolio went south.... :P

Still beating the general market YTD though.

Cheers!
preben is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: The "price" of diversification
Old 07-15-2005, 01:04 PM   #2
Recycles dryer sheets
 
Join Date: Oct 2003
Posts: 452
Re: The "price" of diversification

But I'll bet that there are some days when the market goes down and your portfolio goes up ? Right ? Those are really 'feel good' days.
renferme is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 01:22 PM   #3
Thinks s/he gets paid by the post
Tadpole's Avatar
 
Join Date: Jul 2004
Posts: 1,428
Re: The "price" of diversification

ben, If misery loves company, I'm your lady. I went to see all the UP and, same as you. Next week is "supposed" to be down; maybe better to not look.
Tadpole is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 01:50 PM   #4
Recycles dryer sheets
 
Join Date: Oct 2004
Posts: 408
Re: The "price" of diversification

I guess we should have been in "growth"
LovesLife is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 02:33 PM   #5
 
Posts: n/a
Re: The "price" of diversification

I rarely watch the market anymore. I have no idea of where I'm at currently YTD. I look when I have to rebalance.

Since I am commited to taking 'no action', watching the market is silly.
  Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 02:57 PM   #6
Recycles dryer sheets
 
Join Date: Oct 2003
Posts: 452
Re: The "price" of diversification

silly , but fun nonetheless,,,especially when going up.
My wife laughs at me for 'counting my money' all the time, can't help it...
my Dad did it, my son does it, and I do it,,, must be genetic !
.
Ray
renferme is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 03:00 PM   #7
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
Re: The "price" of diversification

I calculate my portfolio balance on a daily basis, totally ridiculous. But it only takes a minute to add up 5 accounts on line. I just enjoy when I "pop" over into the next ten thousands. Hey, some play minesweeper, I play account counter!
laurence is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 03:26 PM   #8
Moderator Emeritus
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,811
Re: The "price" of diversification

My Money program keeps me up to date.* I check it each night......I know..anal retentive* (is that hypenated?)*

It is nice to know if you were up or down for the day; I guess I am easily entertained* .

I really have way too much time invested in this stuff to let it all just go.* I am calculating my exit strategy down to the dollar, even though I know I don't need to.* I try to explain it all to DW but she just says "you take care of that, but maker sure we won't be eating cat food when we are 80".* *:P

No Worries Mate!* We are on track to be eating at least a high grade of dog food by then.*

Guess I need a hobby.*
__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 03:32 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
Re: The "price" of diversification

Doesn't Bernstein refer to this as "tracking error"?
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 03:42 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: The "price" of diversification

Quote:
Originally Posted by SteveR
My Money program keeps me up to date.* I check it each night......I know..anal retentive* (is that hypenated?)*

It is nice to know if you were up or down for the day; I guess I am easily entertained* .

I really have way too much time invested in this stuff to let it all just go.* I am calculating my exit strategy down to the dollar, even though I know I don't need to.* I try to explain it all to DW but she just says "you take care of that, but maker sure we won't be eating cat food when we are 80".* *:P

Do Worries Mate!* We are on track to be eating at least a high grade of dog food by then.*

Guess I need a hobby.*
Not necessarily. For years, in every idle moment, I would work up my net worth
on place mats, cocktail napkins, the daily paper, etc. A harmless distraction
in my view.

JG
MRGALT2U is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 07:32 PM   #11
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
Re: The "price" of diversification

I update my spreedsheet every two or three days. It takes about 5 minutes. YTD is almost 5% - not bad relative to the overall market.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 07:40 PM   #12
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Re: The "price" of diversification

"every two or three days. It takes about 5 minutes"

I like the cocktail napkins approach. I probably will update mine at the end of the year just to see where I am.



__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 10:23 PM   #13
Recycles dryer sheets
 
Join Date: Jul 2002
Posts: 422
Re: The "price" of diversification

He he - some good and honest replies!

I would like to say something cool about me only checking once a month or year but I can't help checking and also consider it a hobby as well as a FIRE-job to keep track. I also analyze new funds/products and potential tinkering and re-balancing.

And yeah I love the days when the overall market(s) are down or flat but my portfolio is up and fortunately there has been more of those!

Up 4-5% on base portfolio and closer to 6% if include the extra stuff (not RE).

Cheers!
preben is offline   Reply With Quote
Re: The "price" of diversification
Old 07-15-2005, 11:16 PM   #14
 
Posts: n/a
Re: The "price" of diversification

Quote:
silly , but fun nonetheless,,,especially when going up.
Exactly! I went a whole week without checking last month, just to see if I could do it. But now I'm back to once-a-day checking.
  Reply With Quote
Re: The "price" of diversification
Old 07-16-2005, 04:59 AM   #15
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: The "price" of diversification

Quote:
Originally Posted by TromboneAl
Exactly!* I went a whole week without checking last month, just to see if I could do it.* But now I'm back to once-a-day checking.*
Sounds like my Dad who stops drinking periodically to make sure he can
still do it. The guy is almost 88 for crying' out loud. He could be drunk by noon
and what difference would it make?J NO one would care (or maybe even notice)

JG
MRGALT2U is offline   Reply With Quote
Re: The "price" of diversification
Old 07-16-2005, 05:55 AM   #16
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,781
Re: The "price" of diversification


Spank my behind and call me a chubby checker! I sit in the laz-y-boy and tally my brokerage accounts almost every morning. BUT (and this is a big but) it really makes no difference.

For DW's benefit I charted our portfolio's daily values and overlaid the DJIA. Guess what... very little correlation. Not too much of a surprise since our allocation is:

50% cash (various taxable and t/free)
25% equities
25% bonds

No divvies reinvested. All go into cash, then into something else when I figure out what that something else is.

BUM

ps Thanks ben. I've picked up alot of investment advice from regular contributors here. You got me looking at PCRIX and VEIEX... now own them both. Exchanged my VEURX for VEIEX to include far east exposure.
__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Re: The "price" of diversification
Old 07-16-2005, 06:10 AM   #17
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
Re: The "price" of diversification

Cut Throat is the most amazing early retiree. He doesn't stew about money or whether there will be enough. He seems so comfortable in his skin. Plus he seems to have a lot of fun and takes nice pictures.

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: The "price" of diversification
Old 07-16-2005, 06:20 AM   #18
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,781
Re: The "price" of diversification

Quote:
Originally Posted by Martha
Cut Throat is the most amazing early retiree. He doesn't stew about money or whether there will be enough. He seems so comfortable in his skin. Plus he seems to have a lot of fun and takes nice pictures.

Can't be too much of a worry-wart when you live in minnesota. I getting the same effect in hurricane alley. I'm learning not to worry. It doesnt do any good.
__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Re: The "price" of diversification
Old 07-16-2005, 07:10 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
Re: The "price" of diversification

Worry is great fun - once you learn not to take yourself too serious. Comes natural to me - doesn't stop me from going out to play.

I call it formulating a back up plan - when I slip and get serious.

Heh, heh, heh
unclemick is offline   Reply With Quote
Re: The "price" of diversification
Old 07-16-2005, 08:54 AM   #20
Recycles dryer sheets
 
Join Date: Jul 2002
Posts: 422
Re: The "price" of diversification

Chubby checker ; you are welcome but I DO charge a beer in fees!
All my divies goes to cash too - and if anything left after spending it will be used for re-balancing.
Cheers!


Quote:
Originally Posted by BUM
Spank my behind and call me a chubby checker! I sit in the laz-y-boy and tally my brokerage accounts almost every morning. BUT (and this is a big but) it really makes no difference.

For DW's benefit I charted our portfolio's daily values and overlaid the DJIA. Guess what... very little correlation. Not too much of a surprise since our allocation is:

50% cash (various taxable and t/free)
25% equities
25% bonds

No divvies reinvested. All go into cash, then into something else when I figure out what that something else is.

BUM

ps* Thanks ben. I've picked up alot of investment advice from regular contributors here.* You got me looking at PCRIX and VEIEX... now own them both. Exchanged my VEURX for VEIEX to include far east exposure.
preben is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Diversification Sweet Spot Rich_by_the_Bay FIRE and Money 78 11-18-2006 02:14 PM
Global vs local diversification donheff FIRE and Money 2 04-28-2006 05:10 AM
Diversification - a new take Gone4Good FIRE and Money 18 09-16-2005 04:41 AM
Painful Diversification yakers FIRE and Money 20 08-23-2005 10:58 AM
How much diversification is over-diversification? Olav23 FIRE and Money 15 07-26-2005 08:39 PM

» Quick Links

 
All times are GMT -6. The time now is 04:07 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.